India to get cheaper bike after the cheapest car
By siliconindia   |   Tuesday, 07 December 2010, 18:58 IST   |    4 Comments
Printer Print Email Email
India to get cheaper bike after the cheapest car
Bangalore: Tata's introduction of Nano has made the country proud and notice that it is possible to manufacture low-cost products in the country. Now, Venu Srinivasan, the Chairman & Managing Director of India's third-largest two-wheeler manufacturer TVS Motor Company, is planning to build cheaper bikes aimed at small towns and rural markets. So far, the cheapest bike from TVS, the 100cc TVS Star Sport, carries a price tag of 32,000. TVS is also working on alternate fuels and said it would look at electric vehicles. With the low-cost models, the company wants to provide users with international designs. Around 600 engineers are working on the development of these new products and in other advanced areas of technology. The team is currently working on low-cost models across product segments. This would result in the creation of a new segment within an existing segment. "We will develop products that are specific to rural areas and are affordable," Srinivasan told his shareholders at the company's recent annual general meeting. He also highlighted the significant growth shown by small towns in the last financial year. According to the company, towns with a population of under 1 million, which accounted for 75 percent of the industry?s sales, grew 29 percent, despite the restricted availability of retail finance. The company's mopeds, which are largely meant for rural areas, grew 30.3 percent during the year. Finally, TVS has found the niche in the domestic market and now company is looking at international designs and new technologies for its product portfolio.

siliconindia